Page 11 - Hess Pension 2017

How Pay and Interest Credits Work
let’s look at how pay credits and interest credits go into your cash Accumulation Account. They begin at the end of your month of hire, and continue for each month of employment. let’s assume the following:
■ Age: 48 years
■ Pay credit: 7 percent
■ Compensation:
- $75,000 annual base pay (on average $6,250 per month, paid $2,884.62 per bi-weekly pay period)
- $25,000 annual bonus (paid once in march)
■ Interest credit: 2.85 percent (paid 0.24 percent each month)
$8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0
Pay and Interest Credits
year 1
Bonus in march
JFMAMJJASOND
months
Pay Credit Interest Credit Prior Balance
How Your Account Can Grow Over Time
now that you’ve seen how pay credits and interest credits go into your account, let’s look at how your cash Accumulation Account could grow over time. Remember, pay and interest credits begin at the end of the month of hire and continue for each month of employment. continuing with the same assumptions we used above, add the following assumptions:
■ Pay credit: 7 percent for two years, then 8 percent at age 50 and thereafter
■ Compensation: - 3 percent base pay increase each year - $2,000 annual bonus increase each year
$300,000 $250,000 $200,000
$150,000 $100,000 $50,000 $0
Cash Accumulation Account Balance Growth over Time
HOW MUCH DO I
HAVE NOW?
you can check your cash Accumulation Account balance, Savings Plan balance and more beginning in your second month of employment at the Hess Bene ts Center at Fidelity (see page 16).
HoW mUcH Will i REcEivE? 9
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